You are the vice president of finance of Waterway Corporation, a retail company that prepared two different schedules of gross margin for the first quarter ended March 31, 2020. These schedules appear below.

		Sales ($5 per unit)		Cost of Goods Sold		Gross Margin
Schedule 1		$159,200		$143,878		$15,322
Schedule 2		159,200		149,550		9,650

The computation of cost of goods sold in each schedule is based on the following data.

		Units		Cost per Unit		Total Cost
Beginning inventory, January 1		10,950		$4.40		$48,180
Purchase, January 10		8,950		4.50		40,275
Purchase, January 30		6,950		4.60		31,970
Purchase, February 11		9,950		4.70		46,765
Purchase, March 17		11,950		4.80		57,360

Ruth Lewis, the president of the corporation, cannot understand how two different gross margins can be computed from the same set of data. As the vice president of finance, you have explained to Ms. Lewis that the two schedules are based on different assumptions concerning the flow of inventory costs, i.e., FIFO and LIFO. Schedules 1 and 2 were not necessarily prepared in this sequence of cost flow assumptions. Prepare two separate schedules computing cost of goods sold and supporting schedules showing the composition of the ending inventory under both cost flow assumptions.

Waterway Corporation Schedules of Cost of Goods Sold For the First Quarter Ended March 31, 2020
		Schedule 1 First-in, First-out		Schedule 2 Last-in, First-out
Cost of Goods Available for SaleEnding InventoryCost of Goods SoldPurchasesBeginning Inventory		$		$
AddLess: Beginning InventoryCost of Goods SoldPurchasesCost of Goods Available for SaleEnding Inventory
Cost of Goods Available for SaleCost of Goods SoldPurchasesEnding InventoryBeginning Inventory
AddLess: Ending InventoryCost of Goods Available for SalePurchasesBeginning InventoryCost of Goods Sold
Beginning InventoryPurchasesEnding InventoryCost of Goods Available for SaleCost of Goods Sold		$		$

Schedules Computing Ending Inventory

First-in, First-out (Schedule 1)
	at	$	=	$
	at	$	=
				$

Last-in, First-out (Schedule 2)
	at	$	=	$
	at	$	=
				$

Waterway Corporation Schedules of Cost of Goods Sold For the First Quarter Ended March 31, 2020 Schedule 1 First-in, First-out Schedule 2 Last-in, First-out $ $ $ $ Schedules Computing Ending Inventory. First-in, First-out (Schedule 1) at $ $ at $ $